STOCK COVERAGE & PLANNING HORIZONS
Current-demand inventory
Current-demand inventory describes stock intended to satisfy demand within a defined current planning horizon. The operation must state the horizon and how demand and eligible stock are measured.
CURRENT-DEMAND INVENTORY IN PRACTICE
- Define the horizonSpecify the demand period and source.
- Check usable supplyReview availability, allocations and incoming stock.
- Review the coverageCompare the same product and units.
Use the agreed units, actual records and approved procedures for your operation.
A WORKED EXAMPLE
80 expected. 100 on hand. 30 on hold.
A hypothetical near-term plan needs 80 units. The system shows 100 on hand, but 30 are held and unavailable for the planned orders. Eligible stock is 70, leaving a ten-unit gap before other supply or approved actions. The on-hand total alone would hide that gap.
WHAT THIS MEANS FOR YOUR QUOTE
Agree the requirement before comparing quotes
Use the actual shipment, stock and service requirements. Record the billing unit, included work and responsibility for exceptions.
Put this term to work. Use the 3PL selection guide to turn these operating requirements into provider checks, and the 3PL RFP guide to document evidence, responsibilities and exceptions.
A LITTLE MORE CONTEXT
Questions about Current-demand inventory
Is current-demand stock automatically safety stock?
No. Expected demand and protective buffers describe different purposes.
Does all on-hand stock cover current orders?
No. Status and allocation can restrict availability.
Is the planning horizon universal?
No. State the actual period and assumptions.
Source & example notes
Definition and operational example prepared by 3PL Hub. Examples describe hypothetical requirements; verify the actual records and agreed procedures for your operation.
Quantities, costs and scenarios are illustrative, not operating targets, approved handling instructions or guarantees. Source guidance reviewed 22 October 2026.
Last updated: · 3PL Hub
